India-based pharmaceutical company Aurobindo has formed a joint venture with Russian OJSC Diod in an attempt to circumvent Russia’ measures against imported medicines.

In 2009, Russia invoked a clause, titled the national reimbursement system, which gave preference to domestically manufactured drugs over imports, but companies have sought to overcome this by establishing joint ventures within the nation.

The 50:50 joint venture, named Aurospharma, will include the construction of a manufacturing facility near Moscow, due to be completed in 2013, and will look to service pharmaceutical markets in Russia, Belarus and Kazakhstan.

As per the terms of the agreement, OJSC Diod’s pharmaceutical ingredient manufacturing unit, CJSC Olifen, will be transferred to Aurospharma.